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1-14 of 14
no interest in this stock? wonder their LED lighting and life science ventures will finally pay off in future or not? if it does, will definitely be a good multi bagger... else will be pretty stagnant but at least the div yield is good
Avi-Tech Electronics: More orders in the pipeline
Summary: We expect Avi-Tech Electronics to outpace the semiconductor industry growth in 2011. We note that the group had recently received a number of new orders from its major customers within the Burn-In Services segment. We anticipate the momentum to continue, as its customers increase the demand for its services in tandem with the market recovery and as the group increases its penetration into the US market. Orderbook from the Engineering Services segment, we note, remains healthy, while repair works are starting to flow in again. Moreover, the Life Sciences and Medical Equipment segments, which are in the mist of fulfilling a number of orders, are likely to continue to make good progress in the upcoming year, as corporations procure new equipment to capture the economic uptick. We continue to like the group for its above-industry growth potential, strong financial position and attractive dividend yield. At current price, we see an upside potential of 47.4% to our S$0.28 fair value. Maintain BUY. (Kevin Tan)
OCBC IR//
Avi-Tech
Electronics: Anticipating a stronger 2Q
Summary: Avi-Tech
Electronics’ 1QFY11 results missed our expectations due to continued weakness in
its Engineering Services segment. However, after our conversation with
management, we believe that the segment has likely bottomed and business
conditions going forward are likely to be better. In the Burn-In Services
segment, we note that business and outlook have been good thus far, with its
systems enjoying high utilization rates. While management cautions that Board
Manufacturing segment may face some slowdown (based on feedback by customers),
Avi-Tech also noted it has a healthy backlog to keep its operations busy. As
such, we are positive that the group is likely post a stronger 2QFY11 quarter.
Maintain BUY and S$0.28 fair value
(unchanged) on Avi-Tech.
-- Kevin
Tan of PS
Avi-Tech Electronics Ltd
Share price: $0.195
Our fair value: $0.210 (upside potential 7.7%)
Provides Burn-in services and Board Mfg for Semiconductor industry
Burn-in & Board Mfg to benefit from semiconductor recovery growth
Has been a laggard, dragged down by engineering services segment
Net cash per share of $0.128
Stripped of net cash, trading at FY10F P/E is only 4.9x
Good dividend yield of 5.2%
Potential M&A opportunities
AVI-TECH, CHINA ANIMAL HEALTHCARE: What analysts now say....
| Wednesday, 21 April 2010 |
Excerpts from latest analyst’s reports…
CIMB-GK initiates coverage of Avi-Tech Electronics (20-c) with 30-c target
Analyst: Tan Siew Ling
CIMB-GK's forecast of Avi-Tech's performance.
Initiate with BUY on improving prospects. We initiate coverage of Avi-Tech (http://www.avi-tech.com.sg) with a BUY recommendation and target price of S$0.30, offering 50% upside potential. Our target price is based on 1.5x CY10 P/BV, in line with the valuations of semiconductor-related stocks during the previous semiconductor upcycle.
Avi-Tech (market cap: $70 m) has net cash of $45.8 m and low capex spending, says CIMB.
To ride the recovery in semiconductor cycle. Avi-Tech provides services and products to the semiconductor industry. After a difficult FY08 and FY09, we expect its earnings to bottom in FY10 and recover in FY11 on the back of a recovery in the semiconductor industry.
The global semiconductor and semiconductor equipment industries are expected to grow 26% and 76% yoy in 2010, respectively.
Expanding non-semiconductor business to smoothen earnings. To reduce its heavy dependence on the highly cyclical semiconductor industry, Avi-Tech is hoping to expand its business into the life science industry, harnessing its existing expertise.
Undemanding valuations with strong balance sheet and good cash flows. Avi-Tech’s net cash per share of S$0.13 as at end-Dec 09 represents 65% of its current market cap.
Ex-cash, Avi-Tech only trades at about 3x CY11 P/E. This compares favourably with other semiconductor-related companies in the region. We believe it will continue to build up its cash hoard despite decent dividend payments given its limited capex spending in the near term, excluding any major M&As. Avi-Tech has been consistently paying dividends consistently since its listing in 2007.
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dec2000 ( Date: 09-Apr-2010 09:13) Posted:
| Summary: Worldwide semiconductor sales as reported by the Semiconductor Industry Association (SIA) on Tuesday showed that the chip market grew by 56.2% YoY in February, following a 47.2% YoY increase in January. This is consistent with our view that the semiconductor market is likely to continue to show improvements in performance, driven by healthy sales momentum and recovery in economic conditions. We are maintaining our OVERWEIGHT view on the semiconductor industry, as we see several data points backing our optimism on the market outlook. Among the various market segments, we continue to favour capital equipment makers such as Avi-Tech Electronics [BUY, S$0.24 fair value] due to their greater growth potential, which may trigger a re-rating in their share prices. (Kevin Tan) |
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this counter up so slow and die so fast...! fainz....
closed @ 0.200 well done!!! keep it up keep it UP!
“The small-cap tech stocks are seeing a big runup. I will continue to place my bets there, especially hard disk-drive component manufacturers,” says DMG analyst James Lim, according to Dow Jones.
DMG is forecasting 20% growth in global hard disk drive sales this year vs almost flat sales in 2009, adding that prospects for drive manufacturers are backed by continuous rollout of new models of PCs, netbooks, notebooks.
Among the disk drive plays, Broadway Industrial (B69.SG) +2.97% at $1.04, Armstrong Industrial (A14.SG) +1.4% at $0.355.
But gains not confined to drive sector, with stocks in other tech segments also firm: Avi-Tech Electronics (CT1.SG) +5.9% at $0.18, DMX Technologies (5CH.SG) +2.6% at $0.395, Creative Technology (C76.SG) +6.7% at $5.38, Jadason Enterprises (J03.SG) +5.3% at $0.10, MediaRing (M09.SG) +6.25% at $0.255.
“The entire tech space has been overlooked by investors over the years. You can argue that they are seeking undervalued plays right now,” Lim says.
Summary: Worldwide semiconductor sales as reported by the Semiconductor Industry Association (SIA) on Tuesday showed that the chip market grew by 56.2% YoY in February, following a 47.2% YoY increase in January. This is consistent with our view that the semiconductor market is likely to continue to show improvements in performance, driven by healthy sales momentum and recovery in economic conditions. We are maintaining our OVERWEIGHT view on the semiconductor industry, as we see several data points backing our optimism on the market outlook. Among the various market segments, we continue to favour capital equipment makers such as Avi-Tech Electronics [BUY, S$0.24 fair value] due to their greater growth potential, which may trigger a re-rating in their share prices. (Kevin Tan)
Can anyone minimize or shut down the noise? If it drags for long, it feels really terrible.
today closing very low at 0.16 ???? check track records - Company making some decent profit and
not too bad payout annually. anyones have information on this Company operations to share with me ?
UNLIKLEY TO HIT 40CTS NOW THAT IT HAS DROPPED SO MUCH..almost same as Valuetronics ..from a high of 39cts drop to 22cts...lokks like may take years...but valuetronics has gd profits and dividends too...AV Tech...ipo no dividends declared so far..not vested in both counters
Westcomb initiates Avi-Tech Electronics at Buy; sets $0.40 target price. Says company unfairly overlooked by investors, shares offer good value.
"We believe that Avi-Tech is undervalued by investors as its business is in a very niche market yet has failed to gain popularity so far in the industry."
Notes company has managed to maintain net profit margin of over 20% for past few years but trades on lower forward PE ratio than peers. Company operates in niche markets of advanced thermal solution, increasingly in demand as chips become smaller, more complex.
